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- Union Budget-2023-25| Amendments in Indirect Tax- GST & Custom
The indirect tax imposed on goods or services forms a significant part of government revenue and it also has a direct impact on inflation as it increases or decreases the cost of products. Therefore, changes in indirect tax form a significant part of the Union budget, and the entire industry keeps a close watch on the same.
First Union Budget of �Amrit Kal� has been a box of plus and minus, wherein the government raised the price of certain products and made some products economical. Further, among multiple GST council meetings, hundreds of notifications, and circulars, the Union budget bought certain changes in Goods and Service tax as well.
Here is a summary of amendments proposed by the Union Budget in GST and customs:
Finance Bill, 2023 has provided for increase/decrease in Basic Custom Duty rate of many products resulting in making goods costlier or economicals. Revised rates were made effective from 02.02.2023.
To encourage the �Make in India� campaign and give a boost to domestic manufacturing and enhance exports, the government has proposed changes in the rate of import duties. Some products are made costlier like artificial jewelry, Toys, rubbers, electric chimney etc. and on the contrary tax rate was reduced on some products such as automobiles.
S. No. | Heading, sub- heading tariff item | Commodity | Earlier Rate | Proposed Rate |
Chemicals | ||||
1 | 2902 50 00 | Styrene | 25 | 2.5% |
2 | 2903 21 00 | Vinyl Chloride Monomer | 25 | 2.5% |
Rubber | ||||
3 | 4005 | Compounded Rubber | 10% | 25% or Rs. 30 per kg., whichever is lower |
Gems and Jewellery Sector | ||||
4 | 7113, 7114 | Articles of precious metals | 20% | 25% |
5 | 7117 | Imitation Jewellery | 20% or Rs. 400 per kg., whichever is higher | 25% or Rs. 600 per kg., whichever is higher |
Electrical Goods | ||||
6 | 8414 60 00 | Electric Kitchen Chimney | 7.5% | 15% |
Automobiles and Toys | ||||
7 | 8712 00 10 | Bicycles | 30% | 35% |
8 | 9503 | Toys and parts of toys (other than parts of electronic toys) | 60% | 70% |
S. No. | HSN | Commodity | Earlier Rate | Proposed Rate |
Agricultural Products and By Products | ||||
1 | 0802 99 00 | Pecan nuts | 100% | 30% |
2 | 1504 20 | Fish lipid oil for use in manufacture of aquatic feed | 30% | 15% |
3 | 1520 00 00 | Crude glycerin for use in manufacture of Epichlorohydrin | 7.5% | 2.5% |
4 | 2102 20 00 | Algal Prime (flour) for use in manufacture of aquatic feed | 30% | 15% |
5 | 2207 20 00 | Denatured ethyl alcohol for use in manufacture of industrial chemicals | 5% | NIL |
6 | 2301 20 | Fish meal for use in manufacture of aquatic feed | 15% | 5% |
7 | 2301 20 | Krill meal for use in manufacture of aquatic feed | 15% | 5% |
8 | 2309 90 90 | Mineral and Vitamin Premixes for use in manufacture of aquatic feed | 15% | 5% |
Minerals | ||||
9 | 2529 22 00 | Acid grade fluorspar (containing by weight more than 97% of calcium fluoride) | 5% | 2.5% |
Petrochemicals | ||||
10 | 2710 12 21, 2710 12 22, 2710 12 29 | Naphtha | 1% | 2.5% |
Gems and Jewellery Sector | ||||
11 | 7102, 7104 | Seeds for use in manufacturing of rough lab-grown diamonds | 5% | Nil |
12 | 7106 | Silver (including silver plated with gold or platinum), unwrought or in semimanufactured forms, or in powder form | 7.5% | 10% |
13 | 7106 | Silver Dore | 6.1% | 10% |
IT, Electronics | ||||
14 | 25, 28, 32, 39, 40, 69, 73, 85 | Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder | 7.5% | Nil |
15 | 3824 99 00 | Palladium Tetra Amine Sulphate for manufacture of parts of connectors | 7.5% | Nil |
16 | Any Chapter | Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone | 2.5% | Nil |
17 | 8529 | Specified parts for manufacture of open cell of TV panel | 5% | 2.5% |
Electronic appliances | ||||
18 | 8516 80 00 | Heat Coil for use in the manufacture of Electric Kitchen Chimneys | 20% | 15% |
Automobiles | ||||
19 | 8703 | Vehicle (including electric vehicles) in Semi-Knocked Down (SKD) form | 30% | 35% |
20 | 8703 | Vehicle in Completely Built Unit (CBU) form , other than with CIF more than USD 40,000 or with engine capacity more than 3000 cc for petrolrun vehicle and more than 2500 cc for diesel-run vehicles, or with both | 60% | 70% |
21 | 8703 | Electrically operated Vehicle in Completely Built Unit (CBU) form, other than with CIF value more than USD 40,000 | 60% | 70% |
22 | 39,40,58,70, 72 73,83,84,85, 87,90 | Vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies for the purpose of testing and/ or certification , subject to conditions | As Applicable | Nil |
Capital Goods | ||||
23 | 84,85 | Specific capital goods/machinery for manufacture of Lithium ion cell for use in battery of electrically operated vehicle (EVs) | As Applicable | Nil |